NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Thursday, June 18, 2015

Savings and Credit Co-operatives (SACCOs) leaders have asked government to fast track regulation for microfinance institutions in the country in order to attract more people to use their services and protect clients.

This comes at a time when SACCOs are increasingly facing fraud related challenges, forcing their leaders to call for a speedy process to enact the law.

“There is a lot of fraud happening in SACCOs and we need a law to maintain their integrity and soundness in the country,” said Bashir Mutebi, the Masaka elder’s Sacco manager.

He said regulation will increase the public’s confidence in the quality of Tier IV financial institution’s services, especially in rural areas where fraud cases have been perpetrated

He also said the absence of the law has created leeway for both clients and SACCOs to be exploited and urged the state minister for microfinance, Caroline Amali, to ensure that a law is passed.

“Currently we are operating under the Uganda Cooperative Societies Statute 1991 and the Uganda Cooperative Regulations 1992, which do not give the guidance we need,” he said.